Inheritance tax threshold set to increase by Mary Collyer
Inheritance tax threshold set to increase
The recent election result will be welcome news for those concerned about inheritance tax. According to its election manifesto, the Conservative party has pledged to introduce a new transferable main residence allowance of £175,000 per person. This new allowance will be in addition to the existing £325,000 tax-free allowance.
It will mean that an individual can die leaving assets worth up to £500,000, including a home, and there will be no inheritance tax to pay on his estate.
As with the existing tax-free allowance, the new main residence allowance will be transferable between married couples/civil partners. This will mean that the total value of assets that a house-owning couple will be able to pass on with no liability to inheritance tax will rise from £650,000 to £1 million.
Currently, full details of the new allowance are not yet known but it is unlikely that it will be introduced until 2017. Let’s hope this is a promise that the new government is able to fulfil!